As the 2022 Kentucky legislative session has come to a close, it’s time to review the new laws that emerged in Frankfort. For those in the alcoholic beverage industry, the most significant of these is HB 500, which contains several significant advances for distillers. Among these are the standardization and legalization of private barrel selection events and the opportunity for distilleries to establish satellite tasting rooms, two steps to promote bourbon tourism in the commonwealth.

One of the many pandemic-inspired ad hoc measures enacted last year to support restaurants and provide much needed merriment for beleaguered patrons has now become a permanent feature of Kentucky law – the cocktail-to-go. SB 67 was signed into law by Kentucky Gov. Beshear on March 15^th featuring an emergency clause thereby rendering it immediately effective.

On February 26^th, the Kentucky House of Representatives overwhelmingly passed legislation that significantly enhances and expands in-state and out-of-state manufacturers’ ability to directly ship their products in and out of Kentucky. The legislation quickly passed the Kentucky Senate and was signed into law by Governor Andy Beshear on March 11^th.  Because the bill contains an emergency clause, nearly all its provisions became effective immediately upon the Governor’s signing.

In a move sure to have a profound effect on state regulation of alcohol sales and distribution, the United States Supreme Court has issued an opinion in Tennessee Wine and Spirits Retailers Assn. v. Thomas that strikes down Tennessee’s two-year in-state residency requirement for initial applicants for state liquor licenses.

The brewing world has come a long way over the past ten years.  Local breweries are an everyday part of our lives providing a wide variety of product on a local, regional and national level to even the most novice of beer drinkers.  As a result of this boon, there are endless opportunities to become a part of the craft beer movement.  One of these opportunities is afforded through the concept of contract brewing. Contract brewing is a burgeoning trend whereby an aspiring, or existing, brewer contracts with another brewery to brew and package beer on their behalf. This may be done for several reasons, such as the desire for a small business to get its foot into the brewing door, the expanded capacity or bottling ability of the contract brewer.  The Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau (“TTB”), which oversees many federal alcohol regulations, considers contract brewing arrangements to be “ordinary commercial agreements.” As alcohol production is a highly-regulated industry, there are still, of course, several regulations and considerations in place with respect to brewing beer on a contract basis, so what follows is a brief overview of the various federal law issues at play.